Wal-Mart Stock Drops After Exec Calls Feb. Sales ‘A Total Disaster’

By Sam Mamudi

Wal-Mart Store‘s (WMT) stock was enjoying a fairly quiet day until about the time this was published:

“In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal- Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my ~7 years with the company.”

That’s from a great scoop by Renee Dudley, which has clearly spooked the market — the stock, which was roughly flat for the day, is now down 3.5% and volume has spiked.

FactSet

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Dudley also notes an email by a senior VP saying he was relieved to see January end, so poor were the results. Unsurprisingly, a Wal-Mart spokesman quoted by Dudley said the emails were “not entirely accurate.”

The news is also dragging down shares of Target (TGT), Family Dollar (FDO) and Dollar General (DG) all falling at about the same time as Wal-Mart, and at the latest down 2%, 1% and 0.5% respectively. Dollar Tree (DLTR) stock also fell, but has recovered and is back up 2.7%.

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There are 4 comments

FEBRUARY 15, 2013 3:12 P.M.

Freal wrote:

No surprise the economy is hurting and Walmart keeps selling crap. Take any product: housewares, underwear, shoes, whatever; even if it has the same brand name the Walmart version is lower in price and a pice of garbage in terms of quality. Even poor people are beginning to realize that by spending a bit more at target or kohls th eproduct will last twice as long.

FEBRUARY 15, 2013 4:09 P.M.

tle wrote:

These people that walmart hires to be executives really need to think before they open their mouths. The majority have not been with the company long enough to really know what goes on at the store level. All Murray has done is scare the investors into thinking whether or not they want to invest in Walmart. Try working in a store for a month or so. They will find it is not the happiest place on earth. With that said, Walmart has been very good to me and others that have put in 15 to 20 years and more.We just don't appreciate the comments that come out of the home office from people that haven't a clue how this company should be run.

FEBRUARY 15, 2013 4:13 P.M.

Kathryn wrote:

Yes, I have noticed this general trend in most goods imported from China....indeed the quality is so poor, the items last only a small fraction of the time the same goods, when produced in the U.S or Europe, lasted. 2 small examples: I bought a "stainless steel" pot in Bed Bath & beyond that appeared to be high quality---it started rusting after 3 months of use!---I still have other pots made in the U.S. from 20 years ago in very good condition. I also bought an expensive sectional couch made in China 2 years ago and it looks like its worn out--to compare, I bought a U.S made couch 15 years ago that has shown little wear.

Chinese goods are cheap and nasty. Bring manufacturing back to the U.S.

With the ongoing currency wars, "imported" goods are really high priced, what we were "promised" with cheap labor overseas was "more affordable" prices, but what we got were HIGHER prices and a terrible decline in quality. Globalization is a failure in this sense.

FEBRUARY 16, 2013 8:39 P.M.

Jimbob wrote:

It is Ironic that that exports of finished products to China is one of the major things that is now saving US
economy.The reason cited for this irony is that the Chinese people Don't like to buy the stuff that they produce and want US made finished goods.So for us to be able to afford high paying manufacturing jobs.
We have to buy crappy Stuff from them so that they can buy our good stuff. Now does't that make more sense Or does it just sound conrtived and evil

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